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Thu, 21 Mar 2019 11:52:08 +0000en-UShourly1https://wordpress.org/?v=5.0.4How Early to Buy a Pre-Construction Condo in Torontohttp://www.yourcondos.com/about/blog/pre-construction-condo/early-buy-pre-construction-condo-toronto/
http://www.yourcondos.com/about/blog/pre-construction-condo/early-buy-pre-construction-condo-toronto/#respondMon, 26 Feb 2018 10:00:00 +0000http://www.yourcondos.com/?p=1090You’ve seen the ads that say, “Buy Pre Construction Condo Toronto” or “Pre Construction Condos for Sale” but you may be wondering what that really means. If you’re in the market for a condo you don’t have to purchase a unit in an existing building (resale), you can buy one in a building that is …

]]>You’ve seen the ads that say, “Buy Pre Construction Condo Toronto” or “Pre Construction Condos for Sale” but you may be wondering what that really means. If you’re in the market for a condo you don’t have to purchase a unit in an existing building (resale), you can buy one in a building that is yet to be built (pre-construction).

When it comes to buying a pre-construction condo in Toronto, you may be getting a better deal than you would if you were purchasing a unit that’s available for resale. To help you understand how early to buy a pre-construction unit and what you need to know, we’ve created the ultimate Buy Pre Construction Toronto list.

Deposit required: Unlike resale condos where your deposit is typically a one time payment of 20% of the purchase price, deposits for pre-construction units are usually 15-20%, but it’s paid by installments, this will provide you with much more financial flexibility. This deposit is needed to fund the construction of the building and is broken down as follows:

A set amount is required when you sign the agreement – $3,000-$5,000, depending on the price of the unit with the balance to 5% due within the 10-15 days that follow

The remainder of the deposit is generally due in time with the phases of the building’s construction

5% at 30 days

5% at 180 days

5% at 365 days

The good news is with a higher deposit and a schedule in place, it’s easier to budget. Plus, you get the satisfaction of knowing that after 365 days, you’ve already put 15-20% of the purchase price down.

You’re allowed to cool off: When you purchase a pre-construction condo anywhere in Ontario you have 10 calendar days to reconsider. Take these 10 days to have your agreement reviewed by a lawyer. If you don’t have a lawyer on standby, your broker can recommend one that they trust. If the lawyer notices anything fishy in the agreement, you can back out immediately without consequences and have your deposit returned in full.

Get used to waiting: With pre-construction condos, the developer will give you an expected completion date for the condo but that doesn’t mean it will be ready on that exact day. It’s rare for a pre-construction condo in Toronto to be ready on time. Builders can delay construction phases for a myriad of reasons that can last anywhere from six months to two years. So, if you are currently renting a place, don’t give notice to your landlord the moment you sign your agreement. Wait until you are sure that your condo unit is ready otherwise you could find yourself without a place to live.

Some agreements will have the delays outlined if the developer knowns them ahead of time. For instance, if they’re waiting for the go-ahead from the city to break ground, they’ll let you know. However, for the most part, these delays will spring up out of nowhere because they are due to harsh weather or a construction strike.

To deal with delays, ask for an assignment clause in your agreement. This gives you the option to sell your unit to another buyer if the project experiences delay after delay.

Expect changes: When it comes to condos, developers are pretty much given carte-blanche to do whatever they want to the building even after you’ve bought your unit. They have leeway to add or subtract floors, change the layout of each suite, put a pool on second floor instead of the roof – basically whatever they see fit. Your agreement should protect you from any material changes but make sure you know what those changes are. Your broker and lawyer can help you with this otherwise you could end up with a condo unit that looks nothing like the original floorplan.

Occupy the interim: There will be a time when the condo is finally built and you can move into the unit. This is called the interim occupancy period where you don’t actually own the unit because that transfer of land hasn’t happened yet but you can live in it. During this period you will have to pay the developer an amount that is equal to what your mortgage payment, condo fees and taxes will be.

How early should you buy a pre-construction condo in Toronto?

Does the early bird actually catch the worm? With pre-construction condo purchases, the earlier you buy to a launch, the better. Mostly likely, once a new sales office opens, prices will gradually increase as units are sold and availability becomes scarce. This is where one of the advantages of working with a VIP Broker kicks in. A VIP broker is internally informed of sales events and can get you into the sales office even before units are launched to the general public. For this reason you would work with a broker because they can determine when is the best time for you to buy in accordance with your financial situation, while also receiving up-to-date news from their respective network of builders.

At least now when you see the ads that say, “Buy Pre Construction Condo Toronto” you’ll know exactly what that means. For more information about when to buy and to speak with a broker, please contact us. Buying a pre-construction condo in Toronto has its perks and what better time than now to take advantage of them?

]]>http://www.yourcondos.com/about/blog/pre-construction-condo/early-buy-pre-construction-condo-toronto/feed/0Toronto Condo Prices: The Most Affordable Neighbourhoodshttp://www.yourcondos.com/about/blog/affordable-condo/toronto-condo-prices-affordable-neighbourhoods/
http://www.yourcondos.com/about/blog/affordable-condo/toronto-condo-prices-affordable-neighbourhoods/#respondThu, 22 Feb 2018 10:00:21 +0000http://www.yourcondos.com/?p=1086In Toronto, finding the right neighbourhoods when looking for a place to live can make all the difference. Yet, Toronto condo prices may have you running for the hills or more likely, the Niagara escarpment. However, you don’t have to leave big city life behind in order to find the right place for you or …

]]>In Toronto, finding the right neighbourhoods when looking for a place to live can make all the difference. Yet, Toronto condo prices may have you running for the hills or more likely, the Niagara escarpment. However, you don’t have to leave big city life behind in order to find the right place for you or your family. There are actually affordable neighbourhoods where Toronto condo prices won’t cost you an arm and a leg.

The most affordable Toronto neighbourhoods are:

Black Creek: Commonly referred to as Jane and Finch, this neighbourhood is home to York University (Keele campus) and Black Creek Pioneer Village.

West Hill: A diverse neighbourhood filled with parks, West Hill is home to many older residents.

Smithfield: Sometimes knowns as the Mount Olive-Silverstone-Jamestown after the major streets in the area, this neighbourhood is home to Etobicoke General Hospital.

Kingsview Village/The Westway: Bounded by Highway 401 and the Humber River, this neighbourhood is conveniently located in close proximity to the airport.

Humbermede: Also called Emery, this neighbourhood has great views of the Humber River, which is also where it gets its name.

Kensington Market/Chinatown: Besides access to everything Chinatown has to offer, this neighbourhood has the famous Kensington Market.

It’s important to keep in mind that with any major metropolis, gentrification will eventually take over, causing Toronto condo prices to increase. If you can afford to buy a condo in any of the aforementioned affordable neighbourhoods sooner rather than later, you will have an easier time selling it in the future. If you don’t plan on selling your condo and are looking to live in it until you retire, you’ll still want to get in on those neighbourhoods early before they become unaffordable.

Things to consider when condo shopping

Besides Toronto condo prices, you should consider other factors before making a purchase.

The community: Remember that when you buy a condo, you’re making an investment into the community where the building is. Ask yourself if this is the community where you want to live. If you have a family, does the community have parks and centres where you kids can play? Are there good schools? If you don’t have kids are you looking to live in a quieter community that has older residents?

Proximity to work: This is a big one. How long do you want to spend getting to and from work. We all know that the TTC is only reliable 50% of the time, the GO train only services certain areas of the city and Toronto traffic can be brutal. If your commute is going to take most of your mornings and evenings away from you, is it really worth living that far away from your job?

Scenery: Does the building have a view you’ll enjoy looking at for years to come? Some people are content with looking out onto a parking lot or facing a brick wall, while other must have a view of Lake Ontario or at least the Don Valley Parkway. If you don’t like what you see when you look out the window, is it worth living in that building?

Amenities: Sure you want the building to have amenities, but what about when you leave your condo? Is there a grocery store close by? Do you have to travel far to find a dry cleaner? If your building doesn’t have exercise facilities and you love to workout, where is the closest gym?

Fees: You may be saving money on the price of your condo but that doesn’t mean the fees will be cheap. When you buy a condo you’re not only going to have to pay off your mortgage, there are monthly fees as well. People often forget about condo fees, so make sure you include them in your budget.

Toronto by the numbers

According to Moneysense.ca, this is the breakdown of Toronto real estate (all dwellings; condos, homes, townhouses etc.)

Average city neighbourhood home purchase price: $861,859

Median price people pay for a home: $774,000

Maximum price people pay for a home: $3,006,200

Minimum price people pay for a home: $273,700

Average 1-year return on your investment: 22.7%

Average 3-year return on your investment:49.1%

Average 5-year return on your investment: 67.9%

Condos between $150k-$350k represent only 1 in 6 condos in the city

As you can see from the above numbers, it is important to be prepared financially when buying in Toronto, but you will see a major ROI within a few years of purchasing your condo. Plus, condos aren’t nearly as expensive as townhouses or three-storey homes, so you don’t have to worry about paying the average city neighbourhood prices.

For more information about where you should buy your condo, or to work with a broker to help you find your dream unit, please contact us. In a city where neighbourhoods are everything, you don’t have to settle for a less than desirable address because of Toronto condo prices.

]]>http://www.yourcondos.com/about/blog/affordable-condo/toronto-condo-prices-affordable-neighbourhoods/feed/0Three Green Condos in Etobicokehttp://www.yourcondos.com/about/blog/green-condo/three-green-condos-etobicoke/
http://www.yourcondos.com/about/blog/green-condo/three-green-condos-etobicoke/#respondMon, 12 Feb 2018 10:00:43 +0000http://www.yourcondos.com/?p=1080Etobicoke is a wonderful place to purchase your first (or second) condo. This western area of Toronto is chock-full of gorgeous scenery and is only a short distance from the airport. For those that are looking to embrace a greener lifestyle, condo living provides the ideal way to do so. When looking for condos in …

]]>Etobicoke is a wonderful place to purchase your first (or second) condo. This western area of Toronto is chock-full of gorgeous scenery and is only a short distance from the airport. For those that are looking to embrace a greener lifestyle, condo living provides the ideal way to do so. When looking for condos in Etobicoke that are built green, where do you start?

To give you a leg up on green living, here are three condos in Etobicoke that are built with the environment and low energy consumption in mind:

West Village by Tridel: Tridel is known for their superior buildings and their West Village condos are no exception. Designed with green living in mind, West Village Phase 1 and West Village Phase 2 (3 is coming soon!) provide the ultimate in environmentally-friendly luxury. Both buildings are certified LEED® gold buildings. This is an important characteristic considering that LEED (Leadership in Energy and Environmental Design) is the most acknowledged green certification system in North America. Each West Village unit is stocked with low flow faucets and and Energy Star appliances. Besides their green certification, design and appliances, West Village condo buildings come equipped with the usual amenities such as a swimming pool and gym facilities.

Key West: Brought to you by TIMES GROUP, Key West is a building of condos in Etobicoke for the environmentally conscious homeowner. The company remains committed to creating an environmentally sustainable environment with each of their projects and Key West doesn’t stray from the pack. Like West Village, Key West is LEED® certified and incorporates energy-efficient features into each unit. By using green construction practices, TIMES GROUP opts to minimize waste without sacrificing quality. Located on the Etobicoke waterfront, you get a great view and get to enjoy a green lifestyle.

Millgate Manor 3: Not exactly a fully green condo building but the Millgate Manor 3 complex by Tridel is doing something right. This highrise allows residents to do their part to reduce landfill waste. This building features a converted garbage chute that is devoted to organics only. As far as waste reduction methods go, this is a big one because most of us already throw out too many organics instead of composting them.

What to look for in green condos in Etobicoke

Green has many definitions. For some people it’s all about air quality, while for others it involves an extensive recycling program. To help you find the green condo that best suits your lifestyle, here’s what to look for:

Energy efficiency: Look for Energy Star appliances because they make lower energy consumption possible. The same goes for double glazed, Low-E windows since they can not only reduce your monthly heating and cooling costs, but reduce your energy consumption as well.

Air quality: The quality of air extends to inside and outside your unit. Most new construction condo buildings are designed to provide continuous fresh air to units once they are occupied. Some even have CO2 monitors in the parking facilities that are designed only to activate air handled equipment as needed instead of all the time, thus preserving energy. Moreover, the interior laxed-based paints and sealants used should be energy efficient and each unit should be well-ventilated and sealed to deter air transfer and energy loss.

Efficient water management: Living green should include energy efficient dual flush toilets and water management. Look for Energy Star washing machines because they can function with less detergent and water yet still get your clothes clean. In addition, shower heads and faucets should be low flow high-pressure to ensure that water isn’t wasted. Water management can also include landscaping that captures rainwater for storage to be used for irrigation.

Environmentally-friendly features: These could involve everything from secure on-premise bicycle storage to a close proximity to public transportation. Another great environmentally-friendly feature is a on-premise recycling disposal system where waste is separated. Furthermore, you can ask the developer if they diverted their construction waste and recycled the leftover materials instead of leaving them to rot in a landfill.

Keeping it green with condos in Etobicoke

It’s important for condo buildings in Canada to have some green elements because the building process does have a certain environmental impact. Furthermore, it gives residents peace of mind knowing that the condo they live in was built using green materials or has environmentally sound features. For instance, the inclusions of an organics only refuse chute or is in walking distance to a streetcar stop.

If you’re in the market for an environmentally-friendly unit to purchase, we can help. Our brokers have access to green condos in Etobicoke that will compliment your energy-saving lifestyle perfectly..

]]>http://www.yourcondos.com/about/blog/green-condo/three-green-condos-etobicoke/feed/0Pricing Impact of the Toronto Development Levy of 103% on Downtown Condoshttp://www.yourcondos.com/about/blog/general-category/pricing-impact-toronto-development-levy-103-downtown-condos/
http://www.yourcondos.com/about/blog/general-category/pricing-impact-toronto-development-levy-103-downtown-condos/#respondMon, 05 Feb 2018 10:00:41 +0000http://www.yourcondos.com/?p=1076When considering buying a condo downtown, there are plenty of benefits, whether you are an investor or an end user. By living in a bustling city, you’ll be within walking distance to public transit, great food, shopping, and everything else you should need to suit your lifestyle. However, with a great condo, there comes some …

]]>When considering buying a condo downtown, there are plenty of benefits, whether you are an investor or an end user. By living in a bustling city, you’ll be within walking distance to public transit, great food, shopping, and everything else you should need to suit your lifestyle. However, with a great condo, there comes some costs you should consider. You’re probably already familiar with the down-payment, the closing costs and condo fees, but, did you know about Toronto’s development levy?

What are development levies?

When a developer decides to create a new condo building, home or construction project – basically any kind of dwelling or commercial building – the city of Toronto charges fees to aid in paying for the capital costs of the infrastructure required to provide services to the development. The word “levy” in this case is synonymous with “fee” because it is being charged to the developer who then passes it down to the buyer. In Toronto, development levies are governed under the Development Charges Act of 1997 and can be found in the standard Agreement of Purchase and Sale.

The reason development levies are imposed is because the city needs the revenue it collects from the “development levy” to grow the city’s infrastructure. For example, the levies collected from a new condo development going up in the heart of downtown, will be used to create new parks and green spaces, transit expansions and repairs, as well as school and hospital improvements.

What do these levies fund?

When new people move into an area, the city of Toronto wants to support the current and new residents by ensuring that all infrastructure is supported and the community can continue to expand. One of the major frameworks that is supported through the development charge is education. The Education Act requires that the city of Toronto collect levies on behalf of the Toronto Catholic District School Board. The money collected for the TCDSB goes to improving schools and the education system.

Besides education, development levies fund:

Roads and related infrastructure

Sewers and sanitation systems

Public libraries

Parks and recreation centres

Police, fire and emergency services

Spadina subway extension project

Transit (TTC)

Water services

Subsidized housing

Improvements to civic services

Hospital, clinics, health and other medical services

Childcare

Pedestrian infrastructure

Stormwater management

Studies to further municipal development

When do you pay these charges?

Development charges are applied first to the builder, otherwise they will not be able to obtain a building permit. Then, the charges are passed down to you, the buyer. You pay the development levy upon closing (more on that below).

How do development levies impact the price of downtown condos?

Because the development levy is passed on to the buyer, it will affect the price of your condo. Depending on the square footage of your unit, the location of the building and which developer is heading the project, development charges can cost you anywhere between $8,000-$20,000 (depending on the size of the unit that you are purchasing). The good news is that you only pay this levy once in a single installment when you close your condo.

The fine print

When you are purchasing a pre-construction condo, especially in the downtown core, you need to ensure that the levies are capped. Almost 99% of the time the levies are capped, meaning that there’s a maximum amount that you have to pay on final closing. If the actual levies amount is less than the capped amount you will only have to pay the actual amount.

Be wary of developers who do not allow for capped levies for you could end up paying an exorbitant amount at closing. For this reason, you should always work with a broker when buying property, especially in downtown Toronto. Your broker will be able to negotiate with the developer on your behalf, ensure that the paperwork is in order and help you find a new developer if they refuse to cap your levies. It’s important to keep in mind that you have 10 days to walk away from a pre-construction deal after signing the agreement. So, if your broker notices anything off, do not pursue this condo unit.

If you are interested in purchasing a pre-construction condo in the heart of downtown, it’s crucial that you understand how much you could be paying in levies. Please contact us for more information regarding the city of Toronto’s development charges. We can help you navigate the costs and fine print so that you not only get a beautiful new property, you get it at a price that makes sense.

]]>http://www.yourcondos.com/about/blog/general-category/pricing-impact-toronto-development-levy-103-downtown-condos/feed/0Eight Reasons Why Working With A VIP Broker Is Essential In The Pre-Construction Markethttp://www.yourcondos.com/about/blog/general-category/eight-reasons-why-working-with-a-vip-broker-is-essential-in-the-pre-construction-market/
http://www.yourcondos.com/about/blog/general-category/eight-reasons-why-working-with-a-vip-broker-is-essential-in-the-pre-construction-market/#respondTue, 30 Jan 2018 14:55:16 +0000http://www.yourcondos.com/?p=514Condo living has hit the GTA over the last few decades and it’s not losing any steam. Tons of people are flocking to freshly constructed condos and are snapping up pre-construction units faster than they’re being built. Condo buildings provide essential amenities to residents such as underground parking, gyms, pools, spas and even some might …

]]>Condo living has hit the GTA over the last few decades and it’s not losing any steam. Tons of people are flocking to freshly constructed condos and are snapping up pre-construction units faster than they’re being built. Condo buildings provide essential amenities to residents such as underground parking, gyms, pools, spas and even some might have grocery stores and banks on their first floor for convenience.

If you’re in the market for a pre-construction condo, it’s especially important to work with a VIP broker. The pre-construction market in Ontario is very specific and if you don’t know the ins and outs, you may find yourself overpaying for a tiny unit you no longer want once the construction is completed.

Before we list the reasons why you should work with a VIP broker, let’s explore exactly what they do and why they’re important to you as a potential buyer.

What is a VIP broker?

In the GTA, there are many new construction projects on the horizon all throughout the year. Condo developers like to work with certain brokers because they have forged a trusted relationship with them and know that these brokers will be able to fill their building’s units. VIP brokers are real estate agents that are granted special status by the top developers in the GTA so that they can offer their clients early or exclusive priority sales on pre-construction condos.

When builders announce their new development project, they might first give access to the builders’ friends and family. Then, the builders grant access to their community of VIP brokers before the general public is allowed access to remaining floor plans and pricing.

There are eight reasons in particular that will help you understand why buying a condo in the pre-construction market works best if you have a VIP broker in your corner.

Better access: As aforementioned, VIP brokers are given special access to pre-construction buildings. They work with the builders to provide you with great access to new projects which leads to better prices. Your VIP broker will also ensure you have your pick of premium suites so if you’re looking for a three-bedroom unit, you actually get one.

You’re vetted: Builders trust the VIP brokers they formed relationships with and that trust is transferred to the buyer. VIP brokers will not present buyers who have a history of bankruptcy or ill-advised investments. They will present buyers that they trust (you) and the builder knows that you won’t renege on the sale or provide false information. The VIP broker has done their research and has vetted you so that the builder doesn’t have to.

They’re vetted: There’s a reason that brokers earn VIP status: they’re knowledgeable at what they do, are trustworthy and deliver results. You should always do your research before working with a broker. Nonetheless, if one has earned VIP status, you can rest assured that they know all the intimate details surrounding the project and the buying process.

Understanding the ins and outs: A VIP brokers knows everything about the pre-construction market and all the terms involved. Your broker will be able to answer your questions, explain Ontario law and how all facets of the sale work. Furthermore, your VIP broker will ensure that all timelines are met and that paperwork is correctly completed.

Unlocking savings: When builders give VIP brokers access to their pre-construction building, they are also giving them access to savings. By working with a VIP broker, they’ll help unlock savings like HST rebates and show you how you can save money on closing costs.

Telling the truth about floor plans: Most people look at condo floor plans and think that they’re all same. This is, unfortunately, not true. Your VIP broker has looked at thousands of floor plans and will be able to tell you which units have narrow hallways, or lack windows in key areas so that sunlight cannot get in, or if the bathroom is in an inopportune place like by the front door or kitchen.

They know the GTA: VIP brokers know which neighbourhoods to avoid and which ones you should invest in. For example, an area may seem less than ideal before the condo development begins but can transform in as little as two years from the addition of a grocery store, high-end shops, fine-dining spots and easy access to a highway. Your VIP broker will also steer you away from neighbourhoods that look good but actually aren’t because they are cut off from public transit or don’t feature enough amenities.

Most importantly, The Price: By working with a VIP broker you are guaranteed that you are buying the condo unit at the lowest price possible and at the earliest time possible. )This sentence may need to be restructured.)

]]>http://www.yourcondos.com/about/blog/general-category/eight-reasons-why-working-with-a-vip-broker-is-essential-in-the-pre-construction-market/feed/0How HST Factors Into A New Home Purchase: Is It Included And What Is HST Rental Rebate?http://www.yourcondos.com/about/blog/general-category/how-hst-factors-into-a-new-home-purchase-is-it-included-and-what-is-hst-rental-rebate/
http://www.yourcondos.com/about/blog/general-category/how-hst-factors-into-a-new-home-purchase-is-it-included-and-what-is-hst-rental-rebate/#respondTue, 30 Jan 2018 14:53:02 +0000http://www.yourcondos.com/?p=512In 2010, the province of Ontario raised the taxes on new homes from 5% (GST) to 13% (HST). However, there is good news. Homebuyers may be eligible for a rebate that would see them being reimbursed for a portion of those taxes. What Is The Hst Rebate And How Does It Work? To encourage people …

]]>In 2010, the province of Ontario raised the taxes on new homes from 5% (GST) to 13% (HST). However, there is good news. Homebuyers may be eligible for a rebate that would see them being reimbursed for a portion of those taxes.

What Is The Hst Rebate And How Does It Work?

To encourage people to buy homes in Ontario (and discourage condo flippers), the provincial government offers an HST rebate for new home purchases. The rebate is available to those who purchase a resale home or condo or pre-construction property. For new homes valued at $400,000 or more, the maximum rebate amount for the provincial part of the HST is capped at $24,000.

When you buy a new home or condo, the price will include HST. However, when the HST is included it actually means that the non-rebatable portion of the tax is contained in the price. In Ontario, HST is 13% and it is the rebatable portion of the tax that you’re entitled a refund for.

Who Is Eligible For The Ontario Hst Rebate?

In order to qualify for the rebate in Ontario, you have to buy a newly constructed home or condo, built a home yourself or contracted a builder to do so. Renovations also apply, but these need to be substantial renovations in which a new addition is added to your home or if the home had to be rebuilt due to fire destruction. If you converted a non-residential property into a liveable space or purchased shares in a new construction co-op housing project, you may also be eligible for the HST rebate.

One of the major stipulations of the rebate is that the property must be your primary residence. Only spouses, parents, grandparents and siblings who do not live on the property are eligible to receive the HST rebate. For instance if you are purchasing the home for an elderly parent or sibling with a disability, you can still apply for the rebate even though you are not going to be living in condo or house. Recreational properties like cottages do not qualify for the refund unless you plan on living there full-time.

A bonus of the HST rebate in Ontario is that you are not required to own the land that lies beneath your home in order to be eligible. This means that if you purchase a new mobile or modular home that is located on land you are leasing or renting, you can still apply for the rebate.

Citizenship And Residency Conditions

Ontario home buyers must present their citizenship and residency information to the government to receive the tax rebate. This condition was put in place in April of 2017 to manage the housing affordability crisis. Although the crisis is most notable in Toronto, you still have to provide citizenship and residency information no matter where in Ontario you are buying your property in order to qualify for the rebate. You’ll also need to provide additional information such as the type of dwelling (condo, semi-detached, detached etc.), and the reason for buying the property (to live in, for a disabled sibling, an investment etc.).

When Should You Apply For Your Rebate?

You must file your rebate claim within the two years following the closing of your new property. For new construction buildings, you have up to two years after construction has been completed to file your rebate request.

When Do You Receive The Rebate?

The HST rebate comes from the Canada Revenue Agency. Once you’ve filled out the appropriate paperwork, provided the required documents and submitted everything, it takes about two months for the review process to culminate. Generally, CRA will send you your tax rebate within 2-6 months.

What About Rental Properties? Are They Eligible For The Rebate?

We’ve covered how homebuyers can benefit from a tax rebate. But, what about those who are looking to purchase an income property? The Government of Ontario has put in place the New Residential Rental Property Rebate (NRRPR) to allow those looking to rent out a new home or condo to enjoy their own rebate. The NRRPR can only be applied by the buyer of the property after closing. While the NRRPR may be an incentive for more people to purchase new rental properties, keep in mind that you will need to pay the full purchase amount with the HST upfront, along with interest until your rebate is granted. Thus, if you are thinking of purchasing a property to rent out, apply for your NRRPR the moment you close to avoid paying exorbitant amounts of interest.

It may seem like a confusing process to apply for the HST rebate in Ontario. In reality, it’s simple and all you need to do is get the right documents in order and fill out the necessary forms. Please contact us for more information. If you’re looking to buy a new condo and are interested in the rebate, we can help.

]]>http://www.yourcondos.com/about/blog/general-category/how-hst-factors-into-a-new-home-purchase-is-it-included-and-what-is-hst-rental-rebate/feed/0What Is An Assignment And How Does It Work?http://www.yourcondos.com/about/blog/general-category/what-is-an-assignment-and-how-does-it-work/
http://www.yourcondos.com/about/blog/general-category/what-is-an-assignment-and-how-does-it-work/#respondTue, 30 Jan 2018 14:51:40 +0000http://www.yourcondos.com/?p=510For some people, the dream of condo living ends before it even begins. Some people decide that they don’t want to live in a certain building or find themselves in a financial cul-de-sac after they’ve signed the agreement. Instead of letting the sale become derelict, an assignment allows the individual to sell their interest in …

]]>For some people, the dream of condo living ends before it even begins. Some people decide that they don’t want to live in a certain building or find themselves in a financial cul-de-sac after they’ve signed the agreement. Instead of letting the sale become derelict, an assignment allows the individual to sell their interest in the property to someone else.

What Is An Assignment?

Joe wants to buy a pre-construction condo. He comes up with a down payment and signs and an agreement with the builder. However, Joe suddenly gets laid off from his job. In order to keep himself financially stable, he won’t be able to take possession of the condo unit. Joe’s friend Sara is interested in buying the unit from him. In order to do so, an assignment is drawn up releasing Joe from the agreement. Joe becomes the assignor while Sara becomes the assignee. An assignment allows Sara to take possession of the condo and become the purchaser.

An assignment gives the seller a chance to sell their interest in a property before they’ve taken possession of it. The assignment is a legal document that outlines the assignee’s promise to purchase the unit and fulfil all the obligations and adhere to the rights outlined in the original agreement. Assignments are generally reserved for pre-construction condos, but, it is possible to assign any type of property as long as there are no clauses against assignment in the original agreement.

Are Negotiations Allowed During An Assignment Sale?

When the assignee takes over the original agreement, everything that is laid out within it must be honoured. The assignee cannot negotiate new terms or a lower price. In other words, if the assignor put down a 20% deposit, then the assignee must do the same.

What Are The Reasons Someone Might Assign Their Property?

Most assignments are financial in nature. As in the scenario with Joe and Sara, getting laid off can lead to an assignment. Also, for pre-construction condos, assignments often come into play when something changes during the building period. For instance, your family could grow and you won’t be able to raise your children in a one-bedroom space. Depending on when you buy, pre-construction properties can take anywhere between two-four years to build and a lot can change in the time between when the condo was bought and when you’re supposed to take possession of it.

For some investors looking to make a quick profit, an assignment can help them do so. Although, it may sound strange to invest in a condo only to assign it and make money, it is legal. If this is something you are thinking of doing, work with a real estate agent to ensure you are playing by the rules.

Closing, Taxes And Fees

Most builders allow assignments but charge a fee if a purchaser would like to include one in their agreement. Assignments also require builder approval before they can be finalized and any profit made from it is taxable. The assignee is now responsible for paying the HST and land transfer taxes on the property. Furthermore, you will need to work with a lawyer to ensure the assignment is finalized and that comes with legal fees as well.

In terms of closing, there are two steps when it comes to an assignment. The first closing occurs between the assignor and the assignee. The second happens between the assignee and the builder. The first closing sees the assignee giving the assignor the amount of the deposit. The second one sees the assignee paying the remaining sum to the builder along with the land transfer taxes. Once the land transfer tax is paid and the remaining deposit is given to the builder, the title of the property is transferred to the assignee.

How Your Real Estate Agent Can Help

An agreement is a contract that needs to be read carefully. There may be terminology that you are unfamiliar with or clauses that you find absurd. Before signing anything, go over the agreement with your real estate agent. Your agent understands the market and can tell you if anything in the agreement is out of the ordinary and should be questioned. Moreover, Ontario registered real estate professionals are obligated to adhere to a strict code of ethics that ensures they act with fairness, honesty and integrity. If there’s something off in the agreement, they will let you know and work on your behalf to correct it or find you a new property to buy.

For The Assignor

Assignment condos come with marketing restrictions. The builder has the right to allow you to assign your agreement but they will limit where you can market it. You cannot post your listing to the MLS or advertise your unit online. If you market your assignment property in a way that violates the rules, you will be considered to be in breach of the agreement and lose your deposit. There are real estate agents who specialize in assignment transactions and will help to sell your property without breaking the rules.

]]>http://www.yourcondos.com/about/blog/general-category/what-is-an-assignment-and-how-does-it-work/feed/0Important Factors To Consider When Buying A Pre-Construction Condohttp://www.yourcondos.com/about/blog/general-category/important-factors-to-consider-when-buying-a-pre-construction-condo/
http://www.yourcondos.com/about/blog/general-category/important-factors-to-consider-when-buying-a-pre-construction-condo/#respondTue, 30 Jan 2018 14:50:13 +0000http://www.yourcondos.com/?p=508Ready to buy your first condo? Congratulations! Condos offer many benefits such as amenities, convenience and parking. Plus, you don’t have to worry about taking care of a lawn or maintaining a three storey home with more bedrooms than you really need. With condos popping up across Ontario, it’s no wonder that people are vying …

]]>Ready to buy your first condo? Congratulations! Condos offer many benefits such as amenities, convenience and parking. Plus, you don’t have to worry about taking care of a lawn or maintaining a three storey home with more bedrooms than you really need. With condos popping up across Ontario, it’s no wonder that people are vying to snatch them up before they’ve even been constructed.

If you’re looking to buy a pre-construction condo, there are certain factors to consider when making your decision.

Your Deposit

The benefits of pre-construction condos is that the deposit is paid over a period of time, as opposed to providing 20% all at once when buying a resale condo. This grants you the financial flexibility if you wish to allocate the funds to other investments or give yourself some time to save up the required payments. Upon signing your agreement, the builder will require increments of your deposit to be paid over a set amount of time. Some companies will break up your deposit to coincide with the construction phases. For instance, you may owe 5% of the deposit upon signing the agreement and another 5% after 90 days, another 5% percentage after 180 days, and then the remaining balance on occupancy etc. You may not know that by working with a VIP Sales Representative connected to the project, it is possible to make amendments to your deposit structure with approval from the builder. Overall, the total deposit for a pre-construction condo is the same as a resale condo unit. Typically the deposit for re-sale is always 20% for domestic buyers, in certain cases it can be lower than 20% but you have to pay CHMC insurance.

The Rescission Period

Anyone who purchases a new condo in Ontario is allotted a 10-day cooling off period to reconsider. This 10-day period is based on calendar days and not business days. The cooling off period is provided so that you, the buyer, can review the agreement with your lawyer and realtor and if there’s anything there that doesn’t make sense or seems off, you have time to correspond with the builder or change your mind entirely. Your deposit will be returned if you back out of the contract before the 10 day period is up.

The Waiting Period

Pre-construction condos come with a waiting period. The builder will give you an expected date for the completion of your unit and the building itself, however in some cases there may be some delays. Overall condos are completed on time, but special circumstances could cause some minor setbacks to your projected move in date. Your agreement will outline any expected delays and what the penalties are if those delays are extended beyond the contract.

Prepare For Changes

When it comes to pre-construction condo buildings, the changes that may occur are only supposed to reflect the building itself and not the unit your purchased. You are protected from what are considered material changes and your agreement will outline what those changes are. Usually the builder will only make minor changes such as moving the gym or the pool to a different floor or tweak the building’s layout slightly.

In The Interim

When your unit is built and you are ready to move in, there is what is known as the period of interim occupancy. This does mean that you can take possession of your unit and move in, however, during the interim period you actually don’t own the condo yet. This is because the land transfer to the building hasn’t occurred yet. In the interim you pay the builder an amount that is equal to what your mortgage payment, condo fees and taxes would be until the condo is officially registered. This is when your mortgage will come into effect and the builder transfers the unit over to you.

Additional Fees And HST

When buying a pre-construction or resale condo, you’ll be subject to condo fees. In pre-construction buildings, the fees are lower because they are set well in advance of the building being constructed. In a new building you can expect your fees to increase 10-20% in the first few years to adjust to the costs of what management needs to run the building. Furthermore, you’ll be asked to contribute to the condo reserve fund, which is an amount equal to two months of condo fees and is paid at the time of closing. This is akin to putting down a security deposit when you rent an apartment. There are also builder closing costs for pre-construction condos that need to be paid when the unit is officially registered and your condo has closed. These costs include utility connections and development fees and are usually about 1-3% of the amount of your original purchase price. Finally, you need to pay HST on your new condo. If you’ve bought the condo to live in, as the end-user, HST is included in your purchase price. However, if you bought the condo as an investment property, you will have to pay the HST upon final closing but you can claim back a portion of it by filing a HST rental rebate.

Buying a pre-construction condo may seem like a lot to take in at first, but if you have the right real estate agent and mortgage broker in your corner, you’ll be well prepared for your new investment.